Australian broad-service MSP, First Focus, has announced that it has acquired Melbourne-based technology company Section Group, marking its third acquisition in 2024.
The purchase was made to strengthen First Focus’s breadth of services and grow its presence in Victoria. Section Group will allow the company to expand its service offerings to include website design and digital marketing, which are not often part of an MSP’s offering but will cater to smaller businesses looking for a single partner for all their IT needs.
First Focus has been on a spending spree over the past 12 months. In February, Channel Insider reported that it has acquired its way into South Australia with the acquisition of Enee.
Meanwhile, in December 2023, Channel Insider reported that First Focus had completed six other acquisitions over the previous three years.
Thanks to this rapid growth, First Focus is now one of the larget MSPs in Australia with more than 300 employees, operating in offices across Australia, New Zealand, The Philippines, Ireland and South Africa.
Section Group was founded in 2011. It has built a reputation in Melbourne for its expertise in creating visually impactful websites and crafting strategic marketing campaigns designed to boost brand awareness and return on investment. The company’s CEO, Natalie Hallett, highlighted the alignment of Section Group’s customer-focused culture with First Focus’s values, which she said made the acquisition a natural fit.
“After seeing First Focus’s recent growth and learning about their approach to acquisitions, I felt they had the right mix of people and services to add value to our customers,” Hallett said in a statement. “This move allows us to continue delivering the high-quality service we’re known for, while also leveraging the infrastructure and nationwide reach that First Focus provides.”
Ross Sardi, CEO of First Focus, shared similar sentiments about the acquisition. “We’re thrilled to welcome Natalie and her team into the First Focus family,” he said. “Together, we’ll be able to scale our capabilities and deliver even more value to customers across Australia.”
Consolidation has been one of the big themes within the Australian channel in 2024. A significant reason for this has been the scramble to build enough skills to offer cybersecurity solutions in a market with a severe skills shortage. However, other factors, such as runaway demand for AI, have also required that MSPs, in particular, adopt a growth and solutions diversification mindset.
Looking ahead to 2025, such trends are likely to continue, so acquisition-heavy businesses, like First Focus, will likely continue to target growth through M&A.
Every month, Channel Insider will highlight some of the M&A activity throughout the channel. Read more about the latest mergers and acquisitions.